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September 7, 2014
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The Oakland Raiders have entered into a $1.25 million settlement, yet to be court approved, with their Raiderettes -- sideline cheerleaders -- over back pay.
The cheerleaders filed a class action lawsuit in 2013, alleging the football team had failed to pay minimum wage and overtime as provided for under California labor law.
That same year, the team commenced paying according to state law. Thus, the settlement covers mainly the years 2010-2012. For each of those years, the Raiderettes will receive $6,000 per person; for 2013-2014 the fee will be $2,500 for each cheerleader.
The settlement will be taken before an Alameda County Superior Court hearing for approval or amendment on Sept. 26.
The Raiders evidently were banking on the seasonal recreational worker exemption under the Fair Labor Standards Act (FLSA) to avoid paying minimum wage and overtime, but they ran into trouble under California wage law.
Major League Baseball is still involved in a lengthy lawsuit over minimum wage and overtime pay for its minor league players and is banking on the same exemption provided for in the FLSA.
To understand how federal labor law affects your business, get a copy of our FLSA Compliance Program, which also includes a poster to be hung in your place of business to signify your understanding and compliance with the FLSA.
